Investor Presentation · 6/18/2014 · Investor Presentation - June 2014 . Multiple payment...
Transcript of Investor Presentation · 6/18/2014 · Investor Presentation - June 2014 . Multiple payment...
Investor Presentation JUNE 2014
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Ingenico, the global leader in seamless payment
A trusted partner, providing secure payment solutions • PCI, SSC, EMVCo, Merchant Council Industry and W3C compliant
Positioned all across the payment value chain, with innovative solutions ranging from payment terminals to services, including e-commerce and mobile
A global player, with a well-balanced presence in mature and emerging markets • Operating in 125 countries
A large and diversified customer base, from small merchants to global brands • The largest network of POS, with >20 million terminals installed, >1000
banks/acquirers connected and >250 payment methods accepted • Partnering with 70% of the Top 30 global retail brands
A proven track record in executing strategy and generating profitable growth • 2009-2013: Revenue ~x2 and EBITDA ~x3 • 2013: revenue of €1.371 billion, up 14%; EBITDA of €279 (up 25%) / EBITDA
margin at 20.3% of revenue
Investor Presentation - June 2014
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Ingenico, at the centre of the payment process
Investor Presentation - June 2014
Multiple payment standards, with
local/global protocols and regulations
Merchants
Acquirers
GATEWAY Multi-channel
Issuers
Consumers
Certified connections
Approval Schemes
Reporting, VAS, CRM and Data analytics
Certified connections
Seamless purchasing experience
Seamless payment service
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A comprehensive and agnostic offer
Addressing the right geographies
Investor Presentation - June 2014
Addressing high-growth segments
Source: Euromonitor & World payment report
225
238
267
3416
Cards e-payment m-payment
2011-2013 Transaction volumes & CAGR (in bn)
2011 volumes 2013 volumes
9%
22%
47%
2011-2013 CAGR
223 286
413
158 191249
6595
164
2008 2011 2016
Non-Cash transactions per region (in bn)
Mature Emerging
Source: Euromonitor
Emerging: LAR, Eastern Europe, MEA, emerging APAC Mature: NAR, Western Europe, mature APAC
+7%
+14%
+9%
+5%
+12%
+8%
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A multi-local strategy / a key differentiator
Investor Presentation - June 2014
New regulation driving new opportunities Integrated eCRs in Turkey
Growing middle-class (50% of the world’s population by 2030, vs 30% today)*
Leveraging Ogone, increased demand for multi/cross channel services More security in the
US EMV migration Point-to-point encryption
Replacement cycle
(security upgrade)
Mobile payment
* Ernst & Young - Hitting the sweet spot The growth of the middle class in emerging markets, 2013
+2,000 applications Certified by >1,000 acquirers/banks
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Leveraging our strong position in payment terminals
Ranked #1 in traditional and mobile POS (ABI report)*
A unique platform for services (Telium): NFC, multimedia as a standard
Open to > 250 payment methods (international schemes, close-loop, NFC, wallets, QR code, etc.)
Tailored to new regulations (ex: ECRPOS in Turkey, SEPA pilots in Europe)
Driving transformational experience for consumers:
Investor Presentation - June 2014
Mobility in store (iSMP…) Consumers’ payment apps iBeacon – compliant solutions
* Reports « mPOS Device Competitive Assessment » and « POS Terminals Competitive Assessment » published by ABI Research in 2014
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Payment terminals: a structurally growing market
In mature markets
• Security driving estate replacement
• Increased touch points with consumers driving new use cases such as kiosk, mobility in store, desk
• Expanded payment options
• Heightened security requirements for retailers
• Greater integration
Investor Presentation - June 2014
In emerging markets
• First equipment market
• Urbanization
• Growing middle class
Source: Euromonitor / IMF
+
+
Number of POS terminals per ‘000 inhabitants in emerging countries
0 5 10 15 20 25
Brazil
South Africa
Malaysia
Ukraine
Mexico
China
Russia
Indonesia
India Mature countries
avg. 24 terminals per 1,000 inh.
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Payment terminals / more and more software on board
Terminals represent the tip of the iceberg
>2,000 applications
R&D: 8% of revenue
>1,000 acquirers/banks
>250 payment methods
Investor Presentation - June 2014
Global Standards
Global Compliance
Local Standards & Apps
Multiple payment options
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Innovation driving growth.
Telium 3 / our next generation
payment platform open to new
ecosystems and partners
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Improved form factor
Payment acceptance
in connected
devices
Business & consumer
apps
TELIUM 3
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48% 52%
Diversifying the business model towards payment services
Group
Investor Presentation - June 2014
Europe - SEPA
2013 Revenue
28%
5% 67%
2013 Revenue
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Europe/SEPA as the forefront with a comprehensive payment solutions offer: in-store, on-line, mobile
~ 50% of revenue derived from services (vs. 27% in 2009)
1,000 employees on payment services
160k merchants connected to our platforms in Europe
In Europe, >300M transactions for Christmas shopping, regardless of the channel
Investor Presentation - June 2014
IN-STORE ON-LINE MOBILE +13%* +37%* +50%*
*Growth in number of transactions managed in December 2013 on Ingenico’s platforms in Europe
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Europe/SEPA as the forefront with a comprehensive payment solutions offer: in-store, on-line, mobile
Investor Presentation - June 2014
New consumers habits Mobility, Internet, social medias
Increased payment touch points
Introduction of tablets/smartphones combined with mPOS for merchants
Multichannel strategy across the full payment value chain
Mobile, multi-lane, kiosk, desk, etc
Smart terminals Transaction
gateway
Collecting
Acquiring
VAS
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2014 / another year of growth
Investor Presentation - June 2014
Organic growth: +20%*
Outstanding growth in Payment Terminals (+21%)
Transaction Services seem well oriented in Europe (+14%)
Outstanding performance in
Q1
Organic growth between 10% and 15%*
EBITDA margin ≥ 21%
Specified guidance for
2014
* At constant exchange rate and based on FY13 pro forma revenue at €1.301bn (excluding TransferTo disposed on December 1, 2013)
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Ingenico / a strong platform for the future
Investor Presentation - June 2014
Revenue target > €1.8bn Continue overall growth
EBITDA margin > 20% Strenghten operational
performance
EBITDA to Free Cash Flow conversion between 45 and 50%
Maintain financial discipline
Pay out ratio: 35% Implement an attractive
dividend policy
2016 Ambition plan
Appendix 2013 financial statements
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Key financials
Investor Presentation - June 2014
in €M FY
2013 FY
2012 Changes vs. FY 2012
Revenue 1371 1206 +14%*
EBITDA In % of revenue
279
20.3%
223
18.5%
+25%
+130 bps
Net profit, attributable to shareholders Per share (in €)
114
2.17
97
1.87
+18%
+16%
Dividend per share in € 0.80 0.70 +14%
* +14%: growth rate at constant FX & scope
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Over-performing top line growth
Investor Presentation - June 2014
Year-on year: + 14% • Ogone: 55M€
• Negative FX impact: -52M€
Like-for-like: +14%
Double digit growth on all business segments • +14%: Growth from Terminals*
business
• +13%**: Accelerated growth from Transactions with Ogone
Leveraging geographically differentiated strategy
* Revenue generated from hardware, servicing & maintenance **Growth rate at constant FX including Ogone contribution in 2012 and excluding TransferTo disposed on December 1, 2013
1001
1206
1371
FY2011 FY2012 FY2013
+14%
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Leveraging geographically differentiated strategy
Investor Presentation - June 2014
14%
17%
9%
9% 8%
43% Asia Pacific
+21%
Central Operations +12%
EMEA +40%
Latin America +0%
North America +42%
Europe SEPA +7%
€1371M
+14%*
*Growth rate at constant FX & scope
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Strong fundamentals across the two business segments
Investor Presentation - June 2014
in €M Terminals Transactions Total FY13
Revenue 1074 297 1371
Like-for-like growth +14% +11% +14%
Adj. Gross profit 494 106 600
In % of revenue 46.0% 43.8%* 43.8%
*Excluding the impact of TransferTo divested as of December 1st, 2013
• Terminals: Increase profitability driven by volumes and strong expertise in supply chain/purchasing
• Transactions: Positive impact from the strategic development towards online solutions (Ogone)
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Operating expenses: Continuing to invest in a fast moving environment
Investor Presentation - June 2014
• Sustained investment in focused R&D and Sales & Marketing to support strategy deployment: Telium 3, mobility and multichannel
• G&A costs under control
in €M FY2013 FY2012
Research & Development 94 85
Sales & Marketing 121 105
General & Administrative 146 133
Adj. Operating expenses
In % of revenue
361
26.4%
323
26.8%
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Net result attributable to shareholders up 18%
Investor Presentation - June 2014
In M€ 2013 2012
Adj. EBIT 239 190
Purchase Price Allocation (30) (26)
Other income & expenses (21) 1
Financial result & Equity Method (18) (15)
Income before tax 169 150
Income tax
Income tax rate
(56)
33%
(50)
33%
Net Result
Net Result, attributable to shareholders
113
114
100
97
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Continuous focus on cash generation
Investor Presentation - June 2014
In M€ FY 2013 FY 2012
EBITDA 279 223 Working capital changes 38 3 Capex (40) (44) Other income & expenses (10) (9)
Interests paid (9) (5)
Tax paid (82) (42)
Free Cash Flow 177 125
Continued control of working capital requirements • Strict monitoring of inventories and receivables in a context of strong business expansion
• Increase in payables in line with activity growth
As expected, capex remained limited
Significant increase in tax paid
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A strong financial structure
Record cash generation
Investor Presentation - June 2014
Strong reduction in debt
• 50% of Ogone’s acquisition reimbursed in a year
69
125
177
37% 56%
63%
2011 2012 2013
FCF Taux de conversionConversion rate
110 75
430
296
0.18 0.11
0.60 0.39 0.6 0.3
1.8
1.1
Dec 31 2011 Dec 2012 Dec 2012 PF Dec 31 2013
Net Debt / Equity Net Debt / EBITDA
*2012 Pro forma Net debt assuming the acquisition of Ogone as of Dec 31 2012